โHow to withdraw profit from ECN.Broker ๐ฆ๐ธ
As you already know: Withdrawal of funds at ECN.Broker is without commission! ๐
Well now let's look into how this withdrawal works.
As any transaction concerning your balance in ECN.Broker, the withdrawal of funds starts in your personal account. You need to select Account Actions - Withdraw funds in the menu on the left.
Now you need to choose where you want to withdraw your profits: to a card, e-wallet or cryptocurrency wallet. ๐ณ๐ผ๐
Bank transfers are suitable if you live in South Africa, Nigeria, Thailand, Indonesia or Malaysia. If you live in other parts of the world, it is bank cards and wallets that will be more convenient.
Select the card payment system, wallet name or cryptocurrency for withdrawal. And next everything is simple - you need to specify which account you are withdrawing funds from, how much, and where you want to receive them.
Make sure that the payment method is verified in your personal cabinet. However, it doesn't take long to verify the payment method - in the My Profile section, select verify payment method and follow the instructions. Once the verification is complete, you will receive an email notification. You can verify more than one method.
If you withdraw funds to an account not in US dollars, the funds will be converted from US dollars at the current exchange rate upon withdrawal.
As soon as you have filled in a withdrawal request, it is immediately submitted for AML verification: this is a mandatory procedure for all brokers. Once it is processed, the funds are sent to you - and further it depends on the payment system: usually withdrawal of funds takes from a couple of hours to five working days.
If anything goes wrong, you know how to contact our support team: support@ecn.broker ๐ง๐ค
As you already know: Withdrawal of funds at ECN.Broker is without commission! ๐
Well now let's look into how this withdrawal works.
As any transaction concerning your balance in ECN.Broker, the withdrawal of funds starts in your personal account. You need to select Account Actions - Withdraw funds in the menu on the left.
Now you need to choose where you want to withdraw your profits: to a card, e-wallet or cryptocurrency wallet. ๐ณ๐ผ๐
Bank transfers are suitable if you live in South Africa, Nigeria, Thailand, Indonesia or Malaysia. If you live in other parts of the world, it is bank cards and wallets that will be more convenient.
Select the card payment system, wallet name or cryptocurrency for withdrawal. And next everything is simple - you need to specify which account you are withdrawing funds from, how much, and where you want to receive them.
Make sure that the payment method is verified in your personal cabinet. However, it doesn't take long to verify the payment method - in the My Profile section, select verify payment method and follow the instructions. Once the verification is complete, you will receive an email notification. You can verify more than one method.
If you withdraw funds to an account not in US dollars, the funds will be converted from US dollars at the current exchange rate upon withdrawal.
As soon as you have filled in a withdrawal request, it is immediately submitted for AML verification: this is a mandatory procedure for all brokers. Once it is processed, the funds are sent to you - and further it depends on the payment system: usually withdrawal of funds takes from a couple of hours to five working days.
If anything goes wrong, you know how to contact our support team: support@ecn.broker ๐ง๐ค
โU.S. Treasury Secretary called the countryโs borrowing levels daunting
The public debt of the United States for the first time in history has passed the $34 trillion threshold. Treasury Secretary Jennette Yellen in a conversation with journalists called these figures frightening, writes RIA Novosti. However, she expressed confidence that the country's economy, which is, by her definition, "impressive", will help manage such a huge amount. Thus she reacted to the collapse of government bonds with a 5-year maturity, which occurred last week - according to Vedomosti, it was the sharpest since May 2023.
The country's national debt has grown by $4 trillion in two years, and it has doubled in the last ten years, according to Vedomosti. The publication estimates that servicing it this year may require more than $1 trillion; according to RIA Novosti's calculations, it may take about one-third of budget revenues.
The $34 trillion mark was exceeded on January 3, according to the statistics of the country's Ministry of Finance.
The public debt of the United States for the first time in history has passed the $34 trillion threshold. Treasury Secretary Jennette Yellen in a conversation with journalists called these figures frightening, writes RIA Novosti. However, she expressed confidence that the country's economy, which is, by her definition, "impressive", will help manage such a huge amount. Thus she reacted to the collapse of government bonds with a 5-year maturity, which occurred last week - according to Vedomosti, it was the sharpest since May 2023.
The country's national debt has grown by $4 trillion in two years, and it has doubled in the last ten years, according to Vedomosti. The publication estimates that servicing it this year may require more than $1 trillion; according to RIA Novosti's calculations, it may take about one-third of budget revenues.
The $34 trillion mark was exceeded on January 3, according to the statistics of the country's Ministry of Finance.
โPreview of the week. Welcome to FED week! All eyes on the Fed and the labor market. Nonfarm Payrolls๐ผ๐ต
We have a busy week ahead of us. Despite the rather large volatility, the dollar index ended last week with a day of complete uncertainty. And at the time of Friday's candle closing, prices approached the opening of the day, leaving the candle with high upper and lower shadows and a short body.๐๐ฎ
Monday, January 29. The dollar may be under pressure๐ธ๐
The economic calendar, as it often happens on Mondays, is not rich in important events.
During the day the monthly report of the Bundesbank will be published. It contains relevant information, statistical data and analysis of the current and expected state of the strongest economy in the eurozone. Given that the closing price of Friday's candle was lower than its opening price, the main scenario may be the weakening of the dollar by inertia.๐ช๐
Tuesday, January 30. Everything depends on the labor market๐ผ๐ช
The euro is attracting more and more attention from traders and investors. According to Goldman and JPMorgan analysts, the European currency is challenging the yen as a carry trade instrument.
Tuesday will be a busy day for eurozone data. GDP data from France, Spain, Germany, Germany, and the eurozone will be released throughout the day. In general, the overall picture is not expected to differ much from the statistics for the previous quarter. However, a bias in either direction could strengthen or weaken the euro, which, in turn, could be one of the drivers for the Greenback movement. ๐ถ๐ฅ
During the U.S. session, data on the house price index, job openings and consumer confidence in the economic sector will be released. Ahead of Friday's nonfarm payrolls data, traders' focus will be on labor market statistics.๐ผ๐ ๐ช
Wednesday, January 31. The U.S. dollar may get support๐ธ๐ช
This Wednesday we will learn the outcome of the first meeting of the US Federal Reserve this year. According to the CME FedWatch Tool, the probability of a 25-point interest rate cut at the March meeting is 46%. In other words, the market is expecting a move towards easing the MPC. The only question is when exactly the U.S. regulator will move to lower the interest rate.
Still, the latest data shows that the markets are too optimistic on this issue, and the cautious comments of the Fed members confirm it. If the regulator takes a wait-and-see stance and announces that the rate will remain unchanged in March, the US dollar could strengthen its position significantly.๐ผ๐๐
We have a busy week ahead of us. Despite the rather large volatility, the dollar index ended last week with a day of complete uncertainty. And at the time of Friday's candle closing, prices approached the opening of the day, leaving the candle with high upper and lower shadows and a short body.๐๐ฎ
Monday, January 29. The dollar may be under pressure๐ธ๐
The economic calendar, as it often happens on Mondays, is not rich in important events.
During the day the monthly report of the Bundesbank will be published. It contains relevant information, statistical data and analysis of the current and expected state of the strongest economy in the eurozone. Given that the closing price of Friday's candle was lower than its opening price, the main scenario may be the weakening of the dollar by inertia.๐ช๐
Tuesday, January 30. Everything depends on the labor market๐ผ๐ช
The euro is attracting more and more attention from traders and investors. According to Goldman and JPMorgan analysts, the European currency is challenging the yen as a carry trade instrument.
Tuesday will be a busy day for eurozone data. GDP data from France, Spain, Germany, Germany, and the eurozone will be released throughout the day. In general, the overall picture is not expected to differ much from the statistics for the previous quarter. However, a bias in either direction could strengthen or weaken the euro, which, in turn, could be one of the drivers for the Greenback movement. ๐ถ๐ฅ
During the U.S. session, data on the house price index, job openings and consumer confidence in the economic sector will be released. Ahead of Friday's nonfarm payrolls data, traders' focus will be on labor market statistics.๐ผ๐ ๐ช
Wednesday, January 31. The U.S. dollar may get support๐ธ๐ช
This Wednesday we will learn the outcome of the first meeting of the US Federal Reserve this year. According to the CME FedWatch Tool, the probability of a 25-point interest rate cut at the March meeting is 46%. In other words, the market is expecting a move towards easing the MPC. The only question is when exactly the U.S. regulator will move to lower the interest rate.
Still, the latest data shows that the markets are too optimistic on this issue, and the cautious comments of the Fed members confirm it. If the regulator takes a wait-and-see stance and announces that the rate will remain unchanged in March, the US dollar could strengthen its position significantly.๐ผ๐๐
โThursday, February 1. The US dollar may be under pressure๐ต
Traders will focus on inflation in the eurozone. In her latest speech, ECB head Christine Lagarde noted that the ECB will base its monetary policy on the inflation growth rate๐ถ๐ธ.
According to preliminary data, the consumer price index will continue its downward trend. However, it is alarming that the index suddenly accelerated last month. If the story repeats, the euro may strengthen significantly against the dollar๐ฐ๐ช.
During the American session, the PMI data will be released. It is expected that the index will be lower than last month and below the milestone mark of "50", separating growth from decline. Such dynamics may indicate that the state of the U.S. economy continues to worsen gradually๐๐.
Friday, February 2. The US dollar may be under pressure๐ต
On Friday the key data on the US labor market - Nonfarm Payrolls - will be published. According to preliminary forecasts, after the previous, unexpectedly strong data, the market is expecting rather weak labor market statistics. The unemployment rate in January should rise slightly (to 3.8%). Nonfarm payrolls should show a weaker growth rate of 177K (after a 216K increase in December). The indicator of average hourly wages should grow by 4.1% (a similar increase was recorded in December)๐ผ๐.
What should traders and investors expect?๐ค๐ฐ
This week will be quite "newsworthy"โก. It is possible that these events will be enough to determine the vector of the dollar index movement in the short term. Of course, the Fed's rhetoric will determine a lot of things.
But what we can be sure of is the high volatility of the market on the background of the news๐ฐ๐. Therefore, it is especially important to follow the rules of risk management and not to forget about stop-losses๐โ .
Traders will focus on inflation in the eurozone. In her latest speech, ECB head Christine Lagarde noted that the ECB will base its monetary policy on the inflation growth rate๐ถ๐ธ.
According to preliminary data, the consumer price index will continue its downward trend. However, it is alarming that the index suddenly accelerated last month. If the story repeats, the euro may strengthen significantly against the dollar๐ฐ๐ช.
During the American session, the PMI data will be released. It is expected that the index will be lower than last month and below the milestone mark of "50", separating growth from decline. Such dynamics may indicate that the state of the U.S. economy continues to worsen gradually๐๐.
Friday, February 2. The US dollar may be under pressure๐ต
On Friday the key data on the US labor market - Nonfarm Payrolls - will be published. According to preliminary forecasts, after the previous, unexpectedly strong data, the market is expecting rather weak labor market statistics. The unemployment rate in January should rise slightly (to 3.8%). Nonfarm payrolls should show a weaker growth rate of 177K (after a 216K increase in December). The indicator of average hourly wages should grow by 4.1% (a similar increase was recorded in December)๐ผ๐.
What should traders and investors expect?๐ค๐ฐ
This week will be quite "newsworthy"โก. It is possible that these events will be enough to determine the vector of the dollar index movement in the short term. Of course, the Fed's rhetoric will determine a lot of things.
But what we can be sure of is the high volatility of the market on the background of the news๐ฐ๐. Therefore, it is especially important to follow the rules of risk management and not to forget about stop-losses๐โ .
Europe threatened by dependence on U.S. gas Bloomberg
European authorities have turned to the United States in their quest to find a substitute for gas from Russia, which has allowed them to completely abandon it by now. Now the region is becoming increasingly dependent on American LNG, and this also threatens it with problems, especially in the context of Biden's recent ban on issuing new permits for its exports, states Bloomberg.
Europe has found U.S. gas supplies politically favorable and a safer option than the alternative from Siberia; moreover, it has relied on their large volumes. But, in fact, the region's authorities have replaced one threat with another, the publication notes. As warned by the Center for Global Energy Policy at the University of Columbia University, the US policy on gas exports may seriously change, while the dependence of European countries on it will increase without alternative sources from Russia and, if possible, Qatar.
European authorities have turned to the United States in their quest to find a substitute for gas from Russia, which has allowed them to completely abandon it by now. Now the region is becoming increasingly dependent on American LNG, and this also threatens it with problems, especially in the context of Biden's recent ban on issuing new permits for its exports, states Bloomberg.
Europe has found U.S. gas supplies politically favorable and a safer option than the alternative from Siberia; moreover, it has relied on their large volumes. But, in fact, the region's authorities have replaced one threat with another, the publication notes. As warned by the Center for Global Energy Policy at the University of Columbia University, the US policy on gas exports may seriously change, while the dependence of European countries on it will increase without alternative sources from Russia and, if possible, Qatar.
Evergrande will be liquidated
Chinese real estate developer Evergrande will be liquidated by a Hong Kong court, Investing.com reported citing Reuters. The size of its debt, exceeding $300 billion, is the largest in the world, while it failed to reach an agreement with creditors on its restructuring. After this news, the company's shares collapsed by 21%.
The court's decision was motivated by the desire to provide certainty for creditors, the portal specifies. Unsuccessful negotiations on debt restructuring lasted more than two years. According to experts, the liquidation of the company may increase investor pessimism about the Chinese real estate market. In addition, there is a probability that it will be difficult and will take a long time.
One of the most expected events of this week will be the results of the two-day meeting of the Federal Reserve, which starts today. As players believe, the key rate will remain unchanged. It is now at its highest levels in the last 20 years.
Chinese real estate developer Evergrande will be liquidated by a Hong Kong court, Investing.com reported citing Reuters. The size of its debt, exceeding $300 billion, is the largest in the world, while it failed to reach an agreement with creditors on its restructuring. After this news, the company's shares collapsed by 21%.
The court's decision was motivated by the desire to provide certainty for creditors, the portal specifies. Unsuccessful negotiations on debt restructuring lasted more than two years. According to experts, the liquidation of the company may increase investor pessimism about the Chinese real estate market. In addition, there is a probability that it will be difficult and will take a long time.
One of the most expected events of this week will be the results of the two-day meeting of the Federal Reserve, which starts today. As players believe, the key rate will remain unchanged. It is now at its highest levels in the last 20 years.
โInvestors may be fooled in their expectations of soon rate cuts in Europe and the U.S. โ Bloomberg
The market expects the U.S. and European central banks to lower interest rates in the coming months. The Fed, according to the players, will start it at the March or May meeting, and the ECB - in April. During the year, they expect 6 rate cuts in the United States and Europe. However, the reality may turn out to be different, reports profinance.ru a warning from Bloomberg.
Recent comments from both regulators make it clear that market participants are too optimistic. Despite the fact that sometimes traders who did not believe the central banks are right, this time it may not happen. The ratio of copper to gold is a relevant signal: in the last few days it has soared to its highest level since the fall. When it is high, it indicates good demand for copper, which indicates a healthy economy. At the same time, yields on government bonds with two-year maturities have fallen and are about 1 percentage point behind October levels. In such circumstances, it would be premature to expect a rate cut soon, the publication notes.
The market expects the U.S. and European central banks to lower interest rates in the coming months. The Fed, according to the players, will start it at the March or May meeting, and the ECB - in April. During the year, they expect 6 rate cuts in the United States and Europe. However, the reality may turn out to be different, reports profinance.ru a warning from Bloomberg.
Recent comments from both regulators make it clear that market participants are too optimistic. Despite the fact that sometimes traders who did not believe the central banks are right, this time it may not happen. The ratio of copper to gold is a relevant signal: in the last few days it has soared to its highest level since the fall. When it is high, it indicates good demand for copper, which indicates a healthy economy. At the same time, yields on government bonds with two-year maturities have fallen and are about 1 percentage point behind October levels. In such circumstances, it would be premature to expect a rate cut soon, the publication notes.
โWorking with limit orders allows a trader to save a lot of time - one can automate the trading process to a large extent. โณ
In financial markets where prices are constantly changing, successful traders often rely on different types of orders to optimize strategies and manage risk. One important tool in a trader's toolbox is pending orders. ๐
A market order is a command to the broker to buy or sell a financial instrument at the current market price. On ECN accounts with ECN.Broker these orders are executed instantly, without requotes, and when opened, the trader receives a position at the current Ask price when buying and Bid price when selling. Stop loss and take profit levels are usually added to the market order for automatic risk management and profit taking. โ๏ธ๐ฐ
Pending orders give traders the opportunity to enter the market at a future date when prices reach a certain level. There are four main types of pending orders:
Buy Limit
An automatic buy when the future Ask price reaches a set value. This type of order is used assuming that the price will start to rise after falling to a certain level. ๐
Buy Stop
Buy when the future Ask price reaches a set value, provided that the current price level is less than the value of the set order. This order is focused on the fact that the price of the instrument will surpass the level and continue to rise. ๐
Sell Limit
Sell when the future Bid price reaches a set value. This type of order supposes that the price, after rising to a certain level, will start to decline. ๐
Sell Stop
Selling when the future Bid price reaches the set value, provided that the current price level is higher than the set order value. This order is intended that the price of the instrument will reach the level and continue to fall. ๐
You can set a pending order in the trading terminal. Please note that stop loss and take profit are executed only for already open positions and will need to be set additionally.
Why do I need pending orders?
Pending orders allow you to plan activities in advance based on market analysis and price forecasts. This is a powerful tool that allows you to manage transactions on financial markets more flexibly and efficiently. ๐ผ
Do you use pending orders often? ๐ค
In financial markets where prices are constantly changing, successful traders often rely on different types of orders to optimize strategies and manage risk. One important tool in a trader's toolbox is pending orders. ๐
A market order is a command to the broker to buy or sell a financial instrument at the current market price. On ECN accounts with ECN.Broker these orders are executed instantly, without requotes, and when opened, the trader receives a position at the current Ask price when buying and Bid price when selling. Stop loss and take profit levels are usually added to the market order for automatic risk management and profit taking. โ๏ธ๐ฐ
Pending orders give traders the opportunity to enter the market at a future date when prices reach a certain level. There are four main types of pending orders:
Buy Limit
An automatic buy when the future Ask price reaches a set value. This type of order is used assuming that the price will start to rise after falling to a certain level. ๐
Buy Stop
Buy when the future Ask price reaches a set value, provided that the current price level is less than the value of the set order. This order is focused on the fact that the price of the instrument will surpass the level and continue to rise. ๐
Sell Limit
Sell when the future Bid price reaches a set value. This type of order supposes that the price, after rising to a certain level, will start to decline. ๐
Sell Stop
Selling when the future Bid price reaches the set value, provided that the current price level is higher than the set order value. This order is intended that the price of the instrument will reach the level and continue to fall. ๐
You can set a pending order in the trading terminal. Please note that stop loss and take profit are executed only for already open positions and will need to be set additionally.
Why do I need pending orders?
Pending orders allow you to plan activities in advance based on market analysis and price forecasts. This is a powerful tool that allows you to manage transactions on financial markets more flexibly and efficiently. ๐ผ
Do you use pending orders often? ๐ค
โThe Fed left the rate unchanged, but it is opposed to rapid policy easing
The key rate in the US remained unchanged according to the decision of the Federal Reserve, announced after yesterday's meeting. The head of the central bank Jerome Powell admitted that its level (5.25 - 5.5%) may be the maximum in the current upward cycle, but he spoke out against the rapid transition to its reduction - this, according to him, could nullify the success in the fight against inflation, as a result of which it would have to tighten monetary policy even more, reports RBC.
Although the rise in inflation has slowed, it is still too high. Evidence of the sustainability of its decline must be constant to convince the Fed that it has indeed gone down, Powell said. If necessary, he is willing to continue to keep the rate at an elevated level. At the same time, the head of the Fed believes that this year it will be appropriate to move to lower the latter; this opinion, according to him, is shared by all members of the committee.
The key rate in the US remained unchanged according to the decision of the Federal Reserve, announced after yesterday's meeting. The head of the central bank Jerome Powell admitted that its level (5.25 - 5.5%) may be the maximum in the current upward cycle, but he spoke out against the rapid transition to its reduction - this, according to him, could nullify the success in the fight against inflation, as a result of which it would have to tighten monetary policy even more, reports RBC.
Although the rise in inflation has slowed, it is still too high. Evidence of the sustainability of its decline must be constant to convince the Fed that it has indeed gone down, Powell said. If necessary, he is willing to continue to keep the rate at an elevated level. At the same time, the head of the Fed believes that this year it will be appropriate to move to lower the latter; this opinion, according to him, is shared by all members of the committee.
โWhat is equity?
In short, equity is the balance plus the result of open positions on an account. The equity indicator can be found in the trading terminal in the "Terminal" tab.
What is the difference between equity and balance?
Balance is the amount on the trading account, which includes all closed transactions, as well as non-trading operations of deposit and withdrawal. Equity is the amount that includes the financial result of open positions. The parameter reflects the current financial situation on the account and shows what amount will remain on the trader's balance after closing all trades. The parameter changes dynamically simultaneously with the change of the current financial result on all open positions. If there are no open trades on the account, the equity value is equal to the balance.
Why to monitor equity?
The nature of equity changes shows the efficiency, effectiveness and risks of the trading system. A large drop in equity relative to the balance indicates risks, while a rapid rise and fall indicates a large position volume and high volatility. If your equity changes drastically, you should probably reconsider your risk management.
If your equity changes sharply not in your favor, you may need to close some trades early.
Equity cannot be below zero, as this would mean a negative account balance. ECN.Broker has a protection against negative balance: when equity approaches zero, the broker automatically closes trades by stop-out. But you should not allow the stop-out level: profitable trades will be closed as well.
To maintain equity at the proper level, it is necessary to minimize risks: avoid deep drawdowns, work mainly on trends. Try to periodically close part of your trades so that the amount of equity is fixed on the balance.
In short, equity is the balance plus the result of open positions on an account. The equity indicator can be found in the trading terminal in the "Terminal" tab.
What is the difference between equity and balance?
Balance is the amount on the trading account, which includes all closed transactions, as well as non-trading operations of deposit and withdrawal. Equity is the amount that includes the financial result of open positions. The parameter reflects the current financial situation on the account and shows what amount will remain on the trader's balance after closing all trades. The parameter changes dynamically simultaneously with the change of the current financial result on all open positions. If there are no open trades on the account, the equity value is equal to the balance.
Why to monitor equity?
The nature of equity changes shows the efficiency, effectiveness and risks of the trading system. A large drop in equity relative to the balance indicates risks, while a rapid rise and fall indicates a large position volume and high volatility. If your equity changes drastically, you should probably reconsider your risk management.
If your equity changes sharply not in your favor, you may need to close some trades early.
Equity cannot be below zero, as this would mean a negative account balance. ECN.Broker has a protection against negative balance: when equity approaches zero, the broker automatically closes trades by stop-out. But you should not allow the stop-out level: profitable trades will be closed as well.
To maintain equity at the proper level, it is necessary to minimize risks: avoid deep drawdowns, work mainly on trends. Try to periodically close part of your trades so that the amount of equity is fixed on the balance.
โBank losses around the world point to U.S. real estate problems
Banks from different countries that provide loans in the American real estate market are suffering losses that are only increasing. This trend is observed in banking structures from different regions - the United States, Europe and Asia. This makes experts doubt the stability of the U.S. real estate sector, reports the agency "Prime" with reference to the Financial Times.
This week three banks announced about the problems of lending in the U.S. real estate market. New York Community Bancorp incurred tangible losses on it, in connection with which its shares collapsed by 45%. Deutsche Bank and Japanese Aozora Bank pointed out the risks associated with their activity on it. The collapse of the U.S. holding triggered a fall in the securities of the world's largest banks, which Aozora's fell more than 20%. The KBW Bank Index, which includes U.S. regional banking organizations, posted its sharpest decline since the collapse of Silicon Valley last spring.
According to billionaire investor Barry Sternlicht, the country's office real estate market will suffer huge losses of more than $1 trillion, causing many banks to default.
Banks from different countries that provide loans in the American real estate market are suffering losses that are only increasing. This trend is observed in banking structures from different regions - the United States, Europe and Asia. This makes experts doubt the stability of the U.S. real estate sector, reports the agency "Prime" with reference to the Financial Times.
This week three banks announced about the problems of lending in the U.S. real estate market. New York Community Bancorp incurred tangible losses on it, in connection with which its shares collapsed by 45%. Deutsche Bank and Japanese Aozora Bank pointed out the risks associated with their activity on it. The collapse of the U.S. holding triggered a fall in the securities of the world's largest banks, which Aozora's fell more than 20%. The KBW Bank Index, which includes U.S. regional banking organizations, posted its sharpest decline since the collapse of Silicon Valley last spring.
According to billionaire investor Barry Sternlicht, the country's office real estate market will suffer huge losses of more than $1 trillion, causing many banks to default.
โCryptocurrencies in ECN.Broker: XRPUSD ๐
In ECN.Broker you can trade cryptocurrencies, and not only the widespread bitcoin. Today, let's talk about another crypto instrument - Ripple, with the XRPUSD ticker.
Ripple (XRP) is one of the ten largest cryptocurrencies and has long been considered one of the "pillars" of the market. The project is focused on instant international payments, which is highly scalable with the possibility of processing up to 1,500 transactions per second. This is many times more than other market leaders - Bitcoin and Ethereum - can offer.
The main goal of the platform is to provide institutional players with an alternative to the SWIFT global payment network. Therefore, XRP is under particular attention of the Securities and Exchange Commission, the main regulatory financial institution in the United States.
๐ RippleNet is an ecosystem that includes a toolkit for fast, large-scale trading using secure private keys. Its operation is built on the XRPL blockchain and transactions are backed by the XRP token. The processing time of XRP sale and purchase transactions is only 3-5 seconds, and the network throughput reaches 1500 transactions per second. RippleNet has more than 200 large companies and institutions from more than 40 countries on board. Among them are such giants as Bank of America, Western Union and Revolut.
XRP is more like a centralized digital asset, while cryptocurrencies are usually categorized as decentralized finance. This is due to the small number of validators in the XRPL blockchain, of which there are only about 150. RPCA (Ripple Protocol Consensus Algorithm) is a different type of XRPL blockchain consensus from PoW and PoS, which does not provide tangible rewards.
What affects the price of an asset? ๐
XRP is freely traded on crypto exchanges and the final price of the coin is determined by trading activity. The greater the issuance of XRP and the more centralized the bulk of the tokens are stored, the higher the inflation rate. XRP is known as a centralized crypto - 55 billion tokens out of 100 are listed on the Ripple team's wallets. For an investor who decides to buy XRP, this increases the risks.
But XRP also has drivers for growth: XRP is the market leader in digitalization in the financial industry. RippleNet has more than 200 large institutional institutions. The more major players use Ripple, the more confident those who have bought XRP feel.
One last thing that affects XRP is intra-corporate events and global news. Due to the high virality and rapid spread of information, it is possible to stumble upon a so-called FUD - fake news created to sow panic or cause a hype. Even Ilon Musk himself has been accused of this, flirting with the Dogecoin token.
How to start trading Ripple (XRP) ๐
It is easy to start trading XRP. It is enough to register a trading account with ECN.Broker and you will already be able to make deals. But in order to buy cryptocurrency with no loss, and preferably with profit, you need to have a functioning trading strategy and follow it.
Before you buy Ripple, you need to understand what the market sentiment is right now. Research the fundamental factors that affect the XRP exchange rate. Look at the news, statements made by company representatives to keep up to date with the events that can change the financial situation. In the case of XRP, the price is also influenced by events in the field of cryptocurrency regulation.
Ripple Labs aims to transform classic banking. The company has challenged Swift. It's a big risk, but if successful, Ripple will gain international recognition and big revenues. ๐
In ECN.Broker you can trade cryptocurrencies, and not only the widespread bitcoin. Today, let's talk about another crypto instrument - Ripple, with the XRPUSD ticker.
Ripple (XRP) is one of the ten largest cryptocurrencies and has long been considered one of the "pillars" of the market. The project is focused on instant international payments, which is highly scalable with the possibility of processing up to 1,500 transactions per second. This is many times more than other market leaders - Bitcoin and Ethereum - can offer.
The main goal of the platform is to provide institutional players with an alternative to the SWIFT global payment network. Therefore, XRP is under particular attention of the Securities and Exchange Commission, the main regulatory financial institution in the United States.
๐ RippleNet is an ecosystem that includes a toolkit for fast, large-scale trading using secure private keys. Its operation is built on the XRPL blockchain and transactions are backed by the XRP token. The processing time of XRP sale and purchase transactions is only 3-5 seconds, and the network throughput reaches 1500 transactions per second. RippleNet has more than 200 large companies and institutions from more than 40 countries on board. Among them are such giants as Bank of America, Western Union and Revolut.
XRP is more like a centralized digital asset, while cryptocurrencies are usually categorized as decentralized finance. This is due to the small number of validators in the XRPL blockchain, of which there are only about 150. RPCA (Ripple Protocol Consensus Algorithm) is a different type of XRPL blockchain consensus from PoW and PoS, which does not provide tangible rewards.
What affects the price of an asset? ๐
XRP is freely traded on crypto exchanges and the final price of the coin is determined by trading activity. The greater the issuance of XRP and the more centralized the bulk of the tokens are stored, the higher the inflation rate. XRP is known as a centralized crypto - 55 billion tokens out of 100 are listed on the Ripple team's wallets. For an investor who decides to buy XRP, this increases the risks.
But XRP also has drivers for growth: XRP is the market leader in digitalization in the financial industry. RippleNet has more than 200 large institutional institutions. The more major players use Ripple, the more confident those who have bought XRP feel.
One last thing that affects XRP is intra-corporate events and global news. Due to the high virality and rapid spread of information, it is possible to stumble upon a so-called FUD - fake news created to sow panic or cause a hype. Even Ilon Musk himself has been accused of this, flirting with the Dogecoin token.
How to start trading Ripple (XRP) ๐
It is easy to start trading XRP. It is enough to register a trading account with ECN.Broker and you will already be able to make deals. But in order to buy cryptocurrency with no loss, and preferably with profit, you need to have a functioning trading strategy and follow it.
Before you buy Ripple, you need to understand what the market sentiment is right now. Research the fundamental factors that affect the XRP exchange rate. Look at the news, statements made by company representatives to keep up to date with the events that can change the financial situation. In the case of XRP, the price is also influenced by events in the field of cryptocurrency regulation.
Ripple Labs aims to transform classic banking. The company has challenged Swift. It's a big risk, but if successful, Ripple will gain international recognition and big revenues. ๐
โWhat is the age to start trading on the market?
There are many examples of successful traders, investors and managers who made their first trades at the age of 12-14. Still, the minimum age for a trader set by the broker is 18 years old.
According to the KYC (know your customer) regulatory principle and anti-money laundering regulations, a broker must identify each user. A minor trader does not yet have sufficient legal rights and documents necessary for identification. In some cases, the age for trading starts at 21.
Sometimes parents open a brokerage account in their name and allow the minor to manage it. However, this option is not legal, and the responsibility lies entirely on the one who opens the account and undergoes verification.
There are curious examples in the history of trading where underage traders have shown unique skills:
Jonathan Lebed made history as the youngest stock fraudster in the world who recognized his fault. In 1996, when he was 13 years old, he received 8000 USD from his father for his birthday, and used it to buy shares of America Online. The account was opened in the name of an adult. One and a half years later, the 8000 turned into 28000. Later, Jonathan Lebed would move on to the Pump&Dump fraud scheme. When he was 17 years old, the SEC would get interested in him, and in 2000, a settlement agreement would be reached on mutually beneficial terms with partial compensation for the victims.
John Doukas is one of the youngest traders and investors. He started making his first trades on a demo account at the age of 9, and got an account at his disposal under the control of his parents at the age of 13.
Dash Yarnold became interested in the market at the age of 11 and started trading on a real account at the age of 14. His strategy is to manage two portfolios: an aggressive trading strategy with a portfolio of technology companies and a conservative one with protected assets.
Do you want to give trading a try without risking anything? Then it doesn't matter how old you are. Learn, read, analyze, train your intuition and decision-making speed. You can open a demo account at any age. And by the age of 18 you can become a professional ready to plunge into the real world of trading.
Open a demo account:
https://client.ecn.broker/#/dashboard/accounts/create?lang=en
There are many examples of successful traders, investors and managers who made their first trades at the age of 12-14. Still, the minimum age for a trader set by the broker is 18 years old.
According to the KYC (know your customer) regulatory principle and anti-money laundering regulations, a broker must identify each user. A minor trader does not yet have sufficient legal rights and documents necessary for identification. In some cases, the age for trading starts at 21.
Sometimes parents open a brokerage account in their name and allow the minor to manage it. However, this option is not legal, and the responsibility lies entirely on the one who opens the account and undergoes verification.
There are curious examples in the history of trading where underage traders have shown unique skills:
Jonathan Lebed made history as the youngest stock fraudster in the world who recognized his fault. In 1996, when he was 13 years old, he received 8000 USD from his father for his birthday, and used it to buy shares of America Online. The account was opened in the name of an adult. One and a half years later, the 8000 turned into 28000. Later, Jonathan Lebed would move on to the Pump&Dump fraud scheme. When he was 17 years old, the SEC would get interested in him, and in 2000, a settlement agreement would be reached on mutually beneficial terms with partial compensation for the victims.
John Doukas is one of the youngest traders and investors. He started making his first trades on a demo account at the age of 9, and got an account at his disposal under the control of his parents at the age of 13.
Dash Yarnold became interested in the market at the age of 11 and started trading on a real account at the age of 14. His strategy is to manage two portfolios: an aggressive trading strategy with a portfolio of technology companies and a conservative one with protected assets.
Do you want to give trading a try without risking anything? Then it doesn't matter how old you are. Learn, read, analyze, train your intuition and decision-making speed. You can open a demo account at any age. And by the age of 18 you can become a professional ready to plunge into the real world of trading.
Open a demo account:
https://client.ecn.broker/#/dashboard/accounts/create?lang=en
โPreview of the week. Strong factors that can support the US dollar growth, important data and comments from the US Fed members
The uncertainty of the last two weeks on the dollar index has finally been resolved - in favor of the bulls. On the back of Friday's labor market data, the US dollar has significantly strengthened its positions, and there is still potential for growth.
Monday, February 5
On the first business day all traders' attention will be focused on the ISM index of business activity in the service sector. PMI is a reliable indicator of the state of this sector. A reading above 50 indicates that business activity in the service sector increased during the survey period, and vice versa. According to advance forecasts, the indicator will not only be above 50, but will also show a significant gap (forecast: 52) from the previous values (50.6).
CBS News aired an interview with Jerome Powell today at 3:00 GMT+3 time, discussing inflation risks, rate expectations, the banking sector and other topics. Powell said that a strong economy, solid growth, a strong labor market and declining inflation make it possible to take your time with a rate cut. That requires more confidence that inflation is approaching the target, and that confidence is growing.
Also on Monday, the head of FRB Atlanta Raphael Bostic will announce his position.
Tuesday, February 6
The key events on the second day of the week will mainly focus on Australia and the Eurozone.
At 6:30 GMT+3 time the RBA will make its interest rate decision and at 7:30 GMT+3 time there will be a press conference to explain the decision on the MPC. Last time, the RBA has already indicated its stance, setting the stage for the tightening of the MPC.
At 13:00 GMT+3 time Eurostat will publish statistics on the change in retail sales. It is expected that the news will not be able to support the euro.
Also on this day the head of FRB Cleveland Loretta Mester will speak.
Wednesday, February 7
The key event of the day will be the publication of U.S. foreign trade data. In addition, members of the Fed's Board of Governors Adrian Kugler, Michelle Bowman and President of the Federal Reserve Bank of Richmond Thomas Barkin will speak on the day.
Thursday, February 8
The focus remains on Fed members' speeches - for the second day in a row, Richmond FRB President Thomas Barkin will speak.
On the same day there will be speeches of ECB representatives Lane and Elderson. Data on initial unemployment claims in the United States and inflation expectations of the Reserve Bank of New Zealand will be released.
Friday, February 9
Toward the end of the trading week, Jerome Powell will provide Congress with written semi-annual reports on the implementation of monetary policy, with comments on the current situation in the economy and its future prospects. The release will take place at 19:00 GMT+3 time.
What should traders and investors expect?
According to the CME FedWatch Tool, the probability of an interest rate cut at the March meeting has dropped to 34%. This suggests that markets have overestimated the Fed's dovish sentiment. Anyway, for today, the greenback feels more confident than the currencies of other countries.
The uncertainty of the last two weeks on the dollar index has finally been resolved - in favor of the bulls. On the back of Friday's labor market data, the US dollar has significantly strengthened its positions, and there is still potential for growth.
Monday, February 5
On the first business day all traders' attention will be focused on the ISM index of business activity in the service sector. PMI is a reliable indicator of the state of this sector. A reading above 50 indicates that business activity in the service sector increased during the survey period, and vice versa. According to advance forecasts, the indicator will not only be above 50, but will also show a significant gap (forecast: 52) from the previous values (50.6).
CBS News aired an interview with Jerome Powell today at 3:00 GMT+3 time, discussing inflation risks, rate expectations, the banking sector and other topics. Powell said that a strong economy, solid growth, a strong labor market and declining inflation make it possible to take your time with a rate cut. That requires more confidence that inflation is approaching the target, and that confidence is growing.
Also on Monday, the head of FRB Atlanta Raphael Bostic will announce his position.
Tuesday, February 6
The key events on the second day of the week will mainly focus on Australia and the Eurozone.
At 6:30 GMT+3 time the RBA will make its interest rate decision and at 7:30 GMT+3 time there will be a press conference to explain the decision on the MPC. Last time, the RBA has already indicated its stance, setting the stage for the tightening of the MPC.
At 13:00 GMT+3 time Eurostat will publish statistics on the change in retail sales. It is expected that the news will not be able to support the euro.
Also on this day the head of FRB Cleveland Loretta Mester will speak.
Wednesday, February 7
The key event of the day will be the publication of U.S. foreign trade data. In addition, members of the Fed's Board of Governors Adrian Kugler, Michelle Bowman and President of the Federal Reserve Bank of Richmond Thomas Barkin will speak on the day.
Thursday, February 8
The focus remains on Fed members' speeches - for the second day in a row, Richmond FRB President Thomas Barkin will speak.
On the same day there will be speeches of ECB representatives Lane and Elderson. Data on initial unemployment claims in the United States and inflation expectations of the Reserve Bank of New Zealand will be released.
Friday, February 9
Toward the end of the trading week, Jerome Powell will provide Congress with written semi-annual reports on the implementation of monetary policy, with comments on the current situation in the economy and its future prospects. The release will take place at 19:00 GMT+3 time.
What should traders and investors expect?
According to the CME FedWatch Tool, the probability of an interest rate cut at the March meeting has dropped to 34%. This suggests that markets have overestimated the Fed's dovish sentiment. Anyway, for today, the greenback feels more confident than the currencies of other countries.
Robert Kiyosaki warns of the risk of a stock market crash US
Despite the rise in U.S. stock indices in recent days, best-selling author of "Rich Dad, Poor Dad" and investor Robert Kiyosaki warns against excessive optimism about it. According to his assessment, the U.S. stocks and bonds are waiting for an imminent collapse, as the current rally is artificial and supported by the growth of IT-giants, investing.com reports his words.
The main U.S. stock indices ended Thursday and Friday with active growth, the S&P 500 updated the absolute maximum. This was facilitated by positive financial results of large companies, as well as exceeded expectations data on employment in the U.S. in January. However, the expert points out that the state of affairs in the country's economy in reality is much worse than it may seem. The stock market is driven by leading IT corporations such as Apple, Amazon, Alphabet and others, which receive subsidies from the state, and this is artificial support.
Despite the rise in U.S. stock indices in recent days, best-selling author of "Rich Dad, Poor Dad" and investor Robert Kiyosaki warns against excessive optimism about it. According to his assessment, the U.S. stocks and bonds are waiting for an imminent collapse, as the current rally is artificial and supported by the growth of IT-giants, investing.com reports his words.
The main U.S. stock indices ended Thursday and Friday with active growth, the S&P 500 updated the absolute maximum. This was facilitated by positive financial results of large companies, as well as exceeded expectations data on employment in the U.S. in January. However, the expert points out that the state of affairs in the country's economy in reality is much worse than it may seem. The stock market is driven by leading IT corporations such as Apple, Amazon, Alphabet and others, which receive subsidies from the state, and this is artificial support.
โU.S. and European stock exchanges closed in the negative on the back of the Fridayโs employment report
Key stock indices in the U.S. and Europe closed yesterday's trading falling - the employment report published on Friday in the United States somewhat cooled investor optimism regarding the imminent The report on employment in the United States published on Friday cooled investors' optimism about the Fed's rate cut, according to the agency "Prime". At the end of the day Dow Jones fell by 0.71%, S&P 500 - by 0.32%, Nasdaq - by 0.20%. ะ Europe negative dynamics was less active - German DAX lost 0.08%, British FTSE 100 and French CAC 40 - 0.04% and 0.03% respectively.
After the release on Friday of stronger data on the labor market than expected, market participants lost hope. expected, market participants have lost hope that the Fed will soon move to reduce interest rates. will soon move to reduce the key rate, the portal writes. The January statistical data showed a more active growth of the level of employment and the fastest rate of increase in wages and salaries for two years. wages. Pressure on the indices was also exerted by the escalation of Tensions in the Middle East, in particular, the new U.S. strikes on targets of groups linked to Iran.
Key stock indices in the U.S. and Europe closed yesterday's trading falling - the employment report published on Friday in the United States somewhat cooled investor optimism regarding the imminent The report on employment in the United States published on Friday cooled investors' optimism about the Fed's rate cut, according to the agency "Prime". At the end of the day Dow Jones fell by 0.71%, S&P 500 - by 0.32%, Nasdaq - by 0.20%. ะ Europe negative dynamics was less active - German DAX lost 0.08%, British FTSE 100 and French CAC 40 - 0.04% and 0.03% respectively.
After the release on Friday of stronger data on the labor market than expected, market participants lost hope. expected, market participants have lost hope that the Fed will soon move to reduce interest rates. will soon move to reduce the key rate, the portal writes. The January statistical data showed a more active growth of the level of employment and the fastest rate of increase in wages and salaries for two years. wages. Pressure on the indices was also exerted by the escalation of Tensions in the Middle East, in particular, the new U.S. strikes on targets of groups linked to Iran.
โBank of America warned of threats to the stock market
Bank of America pointed out four factors threatening the stock market, Investing.com reports with reference to Business Insider. Despite the positive macroeconomic indicators in the U.S., they can stop its current growth, the bank believes. These risks are discussed below.
1. Sluggish demand. The financial results of companies in the S&P 500 for the fourth quarter were worse than expected. Revenues increased by just 3%, below the rate of inflation in the States.
2- The trend toward downsizing is accelerating. More big companies, including Microsoft and Alphabet, are laying off employees - sowing doubts that demand has turned to growth.
3. More companies are cutting dividends. A number of experts see this as a signal that if the key rate remains at current levels, corporate earnings will soon start to suffer.
4. The attacks of the Hussites in the Red Sea and the Panama Canal disrupted international supplies. Experts forecast inflation growth against this background, which may keep the Fed from lowering the rate this year.
Bank of America pointed out four factors threatening the stock market, Investing.com reports with reference to Business Insider. Despite the positive macroeconomic indicators in the U.S., they can stop its current growth, the bank believes. These risks are discussed below.
1. Sluggish demand. The financial results of companies in the S&P 500 for the fourth quarter were worse than expected. Revenues increased by just 3%, below the rate of inflation in the States.
2- The trend toward downsizing is accelerating. More big companies, including Microsoft and Alphabet, are laying off employees - sowing doubts that demand has turned to growth.
3. More companies are cutting dividends. A number of experts see this as a signal that if the key rate remains at current levels, corporate earnings will soon start to suffer.
4. The attacks of the Hussites in the Red Sea and the Panama Canal disrupted international supplies. Experts forecast inflation growth against this background, which may keep the Fed from lowering the rate this year.
The U.S. film industry continues to be one of the most dynamic sectors for investing. Shares of leading companies like Disney and Netflix have shown steady growth, with average annualized returns exceeding 15%.
As streaming platforms evolve and global demand for diverse content continues to grow, movie companies are at the center of investors' attention. The anticipated growth of the industry is supported by the introduction of new technologies, variety of content, and a steady increase in the number of subscribers.
Screenwriters' and directors' guild strikes have ended, but some projects have been forced to change their release dates. According to Gower Street CEO Dimitrios Mitsinikos, audience interest in movies is still high.
Do you already have stocks of companies from the film industry in your portfolio?
As streaming platforms evolve and global demand for diverse content continues to grow, movie companies are at the center of investors' attention. The anticipated growth of the industry is supported by the introduction of new technologies, variety of content, and a steady increase in the number of subscribers.
Screenwriters' and directors' guild strikes have ended, but some projects have been forced to change their release dates. According to Gower Street CEO Dimitrios Mitsinikos, audience interest in movies is still high.
Do you already have stocks of companies from the film industry in your portfolio?
Chinaโs real estate collapse surpasses U.S. timeline of global crisis โ expert
The collapse faced by the Chinese real estate sector is heavier than the one that took place in the U.S. during the global crisis of 2008, Business Insider reports the words of the head of the hedge fund Hayman Capital's Kyle Bass. This segment plays an important role in China's economy, accounting for about 1/4 of its GDP. A series of defaults that befell the industry has broken the basic structure of the country's economy, the expert stated.
The economic upswing in the PRC, observed before the coronavirus pandemic, was ensured by the lack of regulation of the real estate market, which overly relied on borrowed funds for growth. Now virtually all Chinese real estate developers, both state-owned and listed, are insolvent; the combined debt of the two largest of them, Evergrande and Country Garden, exceeds $500 billion, Bass noted. The scale of this crisis poses a threat to the entire Chinese economy.
The collapse faced by the Chinese real estate sector is heavier than the one that took place in the U.S. during the global crisis of 2008, Business Insider reports the words of the head of the hedge fund Hayman Capital's Kyle Bass. This segment plays an important role in China's economy, accounting for about 1/4 of its GDP. A series of defaults that befell the industry has broken the basic structure of the country's economy, the expert stated.
The economic upswing in the PRC, observed before the coronavirus pandemic, was ensured by the lack of regulation of the real estate market, which overly relied on borrowed funds for growth. Now virtually all Chinese real estate developers, both state-owned and listed, are insolvent; the combined debt of the two largest of them, Evergrande and Country Garden, exceeds $500 billion, Bass noted. The scale of this crisis poses a threat to the entire Chinese economy.
โSafety precautions for trading in the markets: hedging
Any investment of money involves risk, but depending on the instrument, the risk may be almost zero, or it may be very high. There are special ways and tools that help an investor to limit the risk of his investment. One of those ways is hedging.
When hedging, the investor transfers part of the risks to other participants of the financial market - for example, to speculators. In such a situation, the investor (hedger) is insured against losses, while the speculator assumes the risks, which allows him to get a higher profit.
It is possible to protect risks in the financial market either fully or only partially. There are four types of hedging:
Full. The investor hedges the entire underlying transaction, fully protecting himself from risks.
Partial. The investor protects part of the main position and insures against part of the risks, for example, currency risks.
Classic. A hedging position is opened after the principal transaction.
Anticipatory. Hedging takes place before the main transaction in order to get the price the investor needs at the conclusion of the main transaction.
Please note: Hedge and diversification should not be confused. Both work as a way to reduce risk. However, diversification is investing in different assets to balance the risks of portfolio devaluation. For example, you can buy stocks, bonds, gold futures and currencies. And if the currency goes down, for example, the stocks will go up. Whereas hedging is to open opposite positions to the underlying investments. For example, when buying shares with the expectation of their growth, an investor opens a short position on them.
For hedging you can use not only the opposite position, but also derivative financial instruments, which allow you to compensate for unforeseen changes in quotations on the stock exchange - futures, forwards, options, swaps.
Any investment of money involves risk, but depending on the instrument, the risk may be almost zero, or it may be very high. There are special ways and tools that help an investor to limit the risk of his investment. One of those ways is hedging.
When hedging, the investor transfers part of the risks to other participants of the financial market - for example, to speculators. In such a situation, the investor (hedger) is insured against losses, while the speculator assumes the risks, which allows him to get a higher profit.
It is possible to protect risks in the financial market either fully or only partially. There are four types of hedging:
Full. The investor hedges the entire underlying transaction, fully protecting himself from risks.
Partial. The investor protects part of the main position and insures against part of the risks, for example, currency risks.
Classic. A hedging position is opened after the principal transaction.
Anticipatory. Hedging takes place before the main transaction in order to get the price the investor needs at the conclusion of the main transaction.
Please note: Hedge and diversification should not be confused. Both work as a way to reduce risk. However, diversification is investing in different assets to balance the risks of portfolio devaluation. For example, you can buy stocks, bonds, gold futures and currencies. And if the currency goes down, for example, the stocks will go up. Whereas hedging is to open opposite positions to the underlying investments. For example, when buying shares with the expectation of their growth, an investor opens a short position on them.
For hedging you can use not only the opposite position, but also derivative financial instruments, which allow you to compensate for unforeseen changes in quotations on the stock exchange - futures, forwards, options, swaps.
โGermanyโs economy faces new problems โ Bloomberg
The state of the German economy indicates that new difficulties await it, the agency "Prime" quotes Bloomberg forecast. It was expected that after a decline in GDP in the fourth quarter, the situation would improve somewhat this year, but it turned out to be different. The country faces a long-term decline in domestic demand amid waning interest in investment in manufacturing, technology and equipment.
Europe's once leading economy has lost stability. According to Barings fund manager Brian Mangviro, all developed countries are experiencing a slowdown in economic growth, but Germany is in trouble, helped by high energy costs. The German auto industry is also suffering, with China increasingly competing with it.
Increased competition is seen in all sectors of the country - around 15% of German companies are experiencing financial problems, the highest proportion in Europe. The real estate sector is weakened - its major players, both Rene Benko's Signa and Adler Group SA, are facing bankruptcy and liquidation.
The state of the German economy indicates that new difficulties await it, the agency "Prime" quotes Bloomberg forecast. It was expected that after a decline in GDP in the fourth quarter, the situation would improve somewhat this year, but it turned out to be different. The country faces a long-term decline in domestic demand amid waning interest in investment in manufacturing, technology and equipment.
Europe's once leading economy has lost stability. According to Barings fund manager Brian Mangviro, all developed countries are experiencing a slowdown in economic growth, but Germany is in trouble, helped by high energy costs. The German auto industry is also suffering, with China increasingly competing with it.
Increased competition is seen in all sectors of the country - around 15% of German companies are experiencing financial problems, the highest proportion in Europe. The real estate sector is weakened - its major players, both Rene Benko's Signa and Adler Group SA, are facing bankruptcy and liquidation.
